Bill Text: VA SB1205 | 2015 | Regular Session | Prefiled
Bill Title: Recyclable materials; changes tax credit by extending expiration date to January 1, 2020.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-03-10 - Governor: Acts of Assembly Chapter text (CHAP0094) [SB1205 Detail]
Download: Virginia-2015-SB1205-Prefiled.html
15101974D Be it enacted by the General Assembly of Virginia: 1. That §58.1-439.7 of the Code of Virginia is amended and reenacted as follows: §58.1-439.7. Tax credit for purchase of machinery and equipment for processing recyclable materials. A. 1. For
taxable years beginning on and after January 1, 1999, but before January 1, 2. The
Department of Environmental Quality shall certify that such machinery and
equipment are integral to the recycling process before the taxpayer shall be 3. No taxpayer shall be denied the credit under this section based solely on another person's use of the tangible personal property produced by the taxpayer, provided that the tangible personal property was sold by the taxpayer to an unaffiliated person in an arm's-length sale. 4. No credit shall be allowed under this section for machinery and equipment unless the machinery and equipment manufacture, process, compound, or produce items of tangible personal property from recyclable materials. B. The total credit allowed under this section in any taxable year shall not exceed 40 percent of the Virginia income tax liability of such taxpayer. C. Any tax credit not used for the taxable year in which the purchase price on recycling machinery and equipment was paid may be carried over for credit against the taxpayer's income taxes in the 10 succeeding taxable years until the total credit amount is used. D. The Department of Environmental Quality shall administer the tax credits under this section. Beginning with credits allowable for taxable year 2015, in no case shall the Department of Environmental Quality issue more than $3 million in tax credits pursuant to this section in any fiscal year of the Commonwealth. A taxpayer shall not be allowed to claim any tax credit unless it has applied to the Department of Environmental Quality and the Department has approved the credit. If the amount of tax credits approved under this section by the Department of Environmental Quality for any taxable year exceeds $3 million, the Department shall apportion the credits by dividing $3 million by the total amount of tax credits so approved, to determine the percentage of otherwise allowed tax credits each taxpayer shall receive. The Department of Environmental Quality shall determine the credit amount allowable for the taxable year and shall provide a written certification to the taxpayer, which shall report the amount of the tax credit approved by the Department. The taxpayer shall attach the certification to the applicable income tax return.
2. That the Department of Environmental Quality in consultation with the Department of Taxation shall develop and update as necessary guidelines implementing the provisions of this act. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§2.2-4000 et seq.). 3. That the provisions of this act shall become effective for taxable years beginning on or after January 1, 2015. |